Hurstwood survives ‘very tough’ economy

PROPERTY investment group Hurstwood endured a “very tough” 2011 following the loss of several large Government tenants.

However, the Manchester group’s latest filed accounts show it “continued to prosper” amid the challenges presented by the economy.

“The directors are pleased with the business’ performance as budgets were met and, in places, exceeded during the period,” said a report in the accounts, which cover the year to December.

“The small management team have again demonstrated their skills and ability in managing the commercial property portfolio, in what continues to be very difficult economic conditions.”

The firm, controlled by chairman Stephen Ashworth, owns more than 100 properties throughout the North West, Yorkshire and Wales.

The accounts show sales and earnings slipped but the group remained profitable. Revenue was down from £8.1m to £7.8m and pre-tax profits fell 21% to £660,539.

The directors added: “The underlying performance is profitable for the the third consecutive year, however the business does remain highly geared given the dramatic fall in commercial property values since the peak of early 2007.

“Pressure on rents and necessary incentives are consistent with 2010 but have not worsened. We have stressed before that it is key in this part of the property cycle to gain and retain commerical clients in order that the group can benefit from more favourable conditions as the cycle moves on.”